The purpose of this paper is to examine the association between strategy, structure and environmental uncertainty, and the design and the use of performance measurements systems. The paper provides empirical evidence on the contextual factors associated with the use of financial and non‐financial measures, process and outcome measures and the deployment of innovative performance measurement systems in manufacturing business units.
A questionnaire was sent to a random sample of 200 Canadian manufacturing organizations. Respondents were asked to indicate to which extent they use different measures. They also had to mention if they had adopted an innovative performance measurement approach such as the balanced scorecard. The questionnaire also included questions to classify organizations as prospectors, defenders or analyzers and to measure the levels of decentralization and perceived environmental uncertainty.
The results show that there is a significant association between strategy, organizational structure and environmental uncertainty and the use of non‐financial and process measures. They also indicate that there is an association between strategy and environmental uncertainty and the deployment of innovative performance measurement systems.
Since the 1990s, performance measurement has become an important issue for both academics and practitioners. The professional literature has suggested that managers should design innovative performance measurement systems such as balanced scorecards that include financial and non‐financial measures and also process and outcome measures. This paper provides a better understanding of the factors that affect the implementation of innovative performance measurement systems.
The paper presents one of the few studies that provide a better understanding of the contingent factors that influence the design and the use of innovative performance measurement systems.
Gosselin, M. (2011), "Contextual factors affecting the deployment of innovative performance measurement systems", Journal of Applied Accounting Research, Vol. 12 No. 3, pp. 260-277. https://doi.org/10.1108/09675421111187692Download as .RIS
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